Refer to the figures. Which figure(s) represent(s) a situation where prices are sticky?

If mortgage brokers do not make a strong effort to evaluate whether the borrower can pay off a loan, this creates a

A) severe adverse selection problem. B) decline in mortgage applications. C) call to deregulate the industry. D) decrease in the demand for houses.

Monetary policy has medium-run effects on which of the following?

A) the level of output but not its composition B) both the level and composition of output C) only the price level D) the level of output AND the price level E) none of the above